Intel intro heats up flash storage market

Electronic News, July 8, 1996 by Andrew MacLellan

Folsom, Calif.--The gloves are off and Intel will finally, officially pit its much-hyped Series 100 Flash Memory Miniature Card against competitors SanDisk and the CompactFlash Association in what is shaping up to be a classic struggle for dominance of the solid state data storage market.

Last week's rollout follows months of sometimes rancorous debate during which both companies trumpeted the merits of their respective technology: SanDisk with its ATA-standard CompactFlash (CF) device; and Intel, which is banking on its use of flash translation layer (FTL) software and the strength of the Pentium processor.

"This is the most uneventful new release we've seen in a long time," said SanDisk senior VP of marketing and sales Leon Malmed. "They introduced this product a year ago, but so far they really don't have much to show for it."

While profits on small form factor storage cards are underwhelming today, both Intel and SanDisk are aggressively positioning themselves as leaders in anticipation of what Scottsdale, Ariz., market researchers In-Stat predicts will be a $319.5 million industry by the end of the decade. To date, SanDisk, with about a year-and-a-half head start, is the largest player in the small form factor flash market, and should claim the bulk of this year's anticipated $2.7 million in sales.

Last fall, the company founded the CompactFlash Association (EN, Oct. 16, 1995), which counts Apple Computer, Cirrus Logic, Motorola, TDK, Siemens and about two score other chip and system-level companies among its corporate membership. SanDisk's foundry needs are met through agreements with LG Semicon, Matsushita and NEC.

From a capacity standpoint, Intel--which led in sales of flash memory chips last year with a 39.8 percent market share, according to In-Stat--appears poised for a significant Miniature Card production ramp. The company has so far garnered support from Fujitsu, flash partner Sharp and Advanced Micro Devices, which was second to Intel with 27.4 percent of the 1995 flash market.

Intel's Miniature Card Implementers Forum, founded earlier this year to promote the linear flash device, now boasts about 40 members, including Samsung Semiconductors, Microsoft, Nokia and Olympus Optical. Intel added that Hewlett-Packard and Konica--both of which also belong to the CompactFlash Association--and Dictaphone Corp. have committed to introducing products based on the Miniature Card.

In fact, there are about a dozen fence sitters who have signed on to both committees, an indication that the market is some time off from shaking out the definitive technology.

The first widespread application for flash storage is likely to be as an image capture card in digital cameras, but the solid-state devices also have potential markets in audio voice recorders and handheld computers. SanDisk, for example, is already shipping its card into the IBM PalmTop PC110 portable computer and Norris Communications' next-generation handheld digital voice recorder.

The essential difference between the CF card and the Miniature Card is the way each interfaces with peripherals and the PC. The SanDisk device employs an on-board ATA controller which communicates with the host in a traditional PCMCIA-standard hardware format, while the Intel card uses a linear flash software model.

Intel said the 2MB Miniature Card, which is priced at $39 in 10,000-unit quantities, will outpace the equivalent CompactFlash device because its FTL drivers eliminate the need for on-board logic, saving component costs.

"We've off-loaded a fair amount of hardware in favor of using the available MIPS on the host CPU," said Intel flash memory product manager Steve Rotz.

SanDisk countered that the use of software is impractical and will force every peripheral and PC to carry the FTL algorithm in order to read and write data to the Miniature Card. SanDisk stressed its product's platform-to-platform and backward compatibility and noted that their ATA-device precludes hidden complications with upgrading software.

"The end user goes to the store, and they expect to buy a storage device that will work on any platform," said Mr. Malmed. "When you are using a software driver that has to match your card, it becomes a nightmare for the retailer."

Mr. Rotz replied that Intel already has agreements with notebook manufacturers Compaq Computer, Toshiba, IBM, NEC, AST, Acer and Hewlett-Packard to pre-load their PCs with FTL software. In addition, FTL was approved as an industry standard by the PCMCIA last spring, opening the doors for more companies to adopt the linear flash model (EN, Data Topics, March 25).

While Intel has made numerous proclamations of industry support, it is worth noting that no design wins have yet been formalized, and neither FTL-compatible notebook or desktop PCs have yet been introduced.

"In order to get to the cost structure for OEM demand, we can't be charging them for a controller, SRAM and firmware every time they buy a card," said Mr. Rotz. "But with software on the PC, it's a done deal. It was just a matter of whipping out the checkbook and convincing OEMs to add this software for free."